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SURVIVE
EXPAND
TRANSFORM

A simple way to plan for the future and challenge your strategic resource allocation.

The reasons for the SET-Model

  • Simplicity
    The SET-Model is a simple way to analyze the future readiness and company culture.
  • Universal Model
    No matter what industry, company size or state the company is in, it is possible to use these numbers. 
  • Comparability
    Due to the standardized approach it is possible to use existing planning and execution instruments to get the right numbers.
  • Insights into Culture
    By reflecting these numbers and comparing them with the industry, it is possible to get insights into the company culture.
  • Insights into Strategy
    Management attention and also strategic resource allocation gives a good picture about the future readiness of the company and potential risks.
SURVIVE

Operational Excellence

Survive covers all the costs, investments and resources that are being allocated towards the "daily business". It involves wages, rent, software-licences but also maintainance and other fields. 

The focus is on improving the operations, processes and price-performance rations in various areas around the company. A big focus should be on optimizing customer facing processes like service quality.

COMPLEXITY

Low-Medium

UNCERTAINTY

Low

BUSINESS IMPACT

Low

Strategic goals of "SURVIVE"

  • Reduce costs
  • Improve quality
  • Improve customer satisfaction
  • Increase efficiency & price-performance ratios
EXPAND

Incremental Innovation &
Scaling geographically and in volume

The first area of "Expand" describes all activities and resources allocated for growing existing offerings, services and incremental innovation in business model, processes and products. This could also mean adding additional features and services, like apps, to existing products.

The second area involves the expansion into new markets and customer segments. This means the expansion of the current offering to a broader audience. 

COMPLEXITY

Medium

UNCERTAINTY

Medium

BUSINESS IMPACT

Low-Medium

Strategic goals of "EXPAND"

  • (Incremental) Innovation of existing products, services, processes, etc.
  • Expanding current service offerings or features
  • Expanding to new customers
  • Expanding to new markets
  • Improve flexibility
TRANSFORM

Radical Innovation &
Efficient commercialization of new ideas

The most uncertain part is "Transform" where the investment of resources is solely focused on radically new business ideas. This could be products, processes, services but also business models. 

This is the area which tells the most about company culture, risk management and also the strategic setting. 
Companies which want to take an industry-leading position have high values in "Transform"
e.g. Google has a 60/20/20 allocation.

COMPLEXITY

Medium-High

UNCERTAINTY

High

BUSINESS IMPACT

Medium-High

Strategic goals of "TRANSFORM"

  • Radical innovation of products, services, business models, processes
  • Radical new strategies for new markets or customers
  • Fast and efficient commercialization of new ideas

Resource Allocation

There is no "best practice" which is true for every industry, company stage and size. 

Factors that influence resource allocation

- Company Size (SME / Corporate)
- Industry (Investment heavy, high volatility, etc.)
- Company Maturity (Early stage / Growth / Established)
- Desired Market Position (Leader / Mainstream / Laggard)
- Market Dynamics (Competition, Growth, Market Entry Barriers, etc.)

Publications & References

Original Publication (EN/DE)

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